French credit insurer Coface outlined a series of challenges to implementing measures to support purchasing power in the United States.

For example, prohibiting institutional purchases of single-family homes would likely require an executive order and could face constitutional challenges under the Fifth Amendment’s Takings Clause, which prohibits the government from taking private property for public use without “just compensation.” 

Without the support of Congress, which remains highly uncertain, this policy would not be implemented. 

Purchasing power in the United States

Similarly, obtaining the necessary support from Congress to implement a cap on credit card interest rates (annual percentage rate or APR) will be an uphill battle. 

With no laws granting the executive branch or regulatory agencies the authority to set prices in the credit card lending market, the initiative would require new legislation. 

Two recent bills were proposed in early 2025, backed by members of both parties (Democrats Bernie Sanders and Alexandra Ocasio Cortez, and Republicans Josh Hawley and Ana Paulina Luna). 

Both have stalled after being introduced to the relevant congressional committees, which Coface suggests indicates that the idea lacks broad bipartisan support.

A watered-down policy (a higher fixed cap or a tiered system) might have a better chance of passing.

Credit cards

An APR cap would reduce affordability for lower-income households. In contrast, it would improve affordability for those who are in a better financial position. Thus, the impact would be uneven.

Today, credit cards account for 57% of consumer loans in the United States. In addition, they finance about 5% of monthly spending. The average APR is around 21%. Since 1996, it has never fallen below 11.8%.

On the one hand, banks warn of a massive credit crunch. The risk, they say, would affect the economy. On the other hand, academic research argues that margins would allow even a 10% cap to be absorbed. However, the real effect would be somewhere in between. Some of the poorest users would lose access. The rest would maintain credit, but at lower rates.